A private highway is a highway owned and operated for profit by private industry. Private highways are common in Asia and Europe; in addition, a few have been built in the United States on an experimental basis. Typically, private highways are built by companies that charge tolls for a period while the debt is retired, after which the highway is turned over to government control. This allows governments to fulfill immediate transportation needs despite their own budget constraints, while still retaining public ownership of the roads in the long term.
An obstacle to private highways is that government regulation can stifle price flexibility and introduce negotiation and paperwork requirements that increase operational expenses, while having to compete against free public roads. In addition, private highways lack some advantages that governments have, such as sovereign immunity against liability for accidents, the use of eminent domain power to acquire private property for roads and the ability to issue tax-exempt securities.[1]
Free-market roads are generally advocated by Libertarians, who consider them safer and more cost-effective than government operated roads.[2]
^Hakin, Simon & Blackstone, Edwin (August 1, 1999). Making inroads in private highway construction. American City & County. Retrieved on January 10, 2008.
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